Brent crude oil prices hovered near the $98 per barrel mark on global markets, as traders reacted cautiously to US President Donald Trump’s decision to maintain a ceasefire with Iran while continuing the strategic blockade of the Strait of Hormuz.

Market sentiment remained mixed, with the extension of the truce offering temporary relief against the risk of immediate military escalation. However, the decision to keep the Hormuz blockade in place has sustained concerns over potential supply disruptions, limiting any significant decline in oil prices.

The Strait of Hormuz, one of the world’s most critical oil transit chokepoints, continues to operate under heightened restrictions, affecting the movement of crude shipments from major Gulf producers. Analysts note that even partial disruptions in this corridor can have outsized effects on global supply chains and pricing benchmarks such as Brent.

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Energy markets have been particularly sensitive to developments in the US-Iran standoff, with prices fluctuating sharply in recent weeks amid fears of broader regional instability. While the ceasefire has reduced the immediate threat of direct conflict, the ongoing blockade is seen as a structural risk factor keeping prices elevated.

Traders are also closely watching diplomatic signals from both Washington and Tehran, as any breakthrough in negotiations could ease supply concerns and lead to price corrections. Conversely, a breakdown in talks or escalation around maritime routes could push crude prices beyond the current range.

With geopolitical uncertainty continuing to shape the outlook, Brent crude is expected to remain volatile in the near term, as markets balance cautious optimism over diplomacy with persistent fears of disruption in one of the world’s most strategically vital energy corridors.

Also Read: Markets Mixed As Oil Prices Rise Amid US-Iran Strait Of Hormuz Tensions